SINGAPORE: The CBOT soybean November contract may rise into a range of $12.09-3/4 to $12.22-1/2 per bushel, following the completion of a five-wave cycle.

The cycle is expected to be partially or totally reversed. The bullish divergence on the hourly RSI confirms a completion of the cycle and suggests a further bounce.

Support is at $11.88-1/2, a break below which could signal a continuation of the downtrend towards the range of $11.71-3/4 to $11.82-1/4.

On the daily chart, the contract stabilised around a support at $11.83-1/2, the 100% projection level of a downward wave c from $14.23.

This wave could either end around $11.83-1/2 or extend far below it. Regardless of the ending point, the contract may hover above $11.83-1/2 for some time.

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